Saudi Real Estate Glossary

Comprehensive glossary of 514 Saudi real estate terms with simple explanations in three languages: Arabic, English, and Turkish.

514

Terms

A

Absher

Saudi government portal providing electronic services for citizens and residents, includes data verification needed for Ejar transactions.

Saudi Regulations

Absolute Auction

An absolute auction sells the property to the highest bidder whatever the amount, with no reserve price; common in Western markets, it is not a distinct legal format in Saudi Arabia, where the brokerage contract must state a minimum award value.

Auctions & Sales

Absorption Rate

Absorption rate is the pace at which the market takes up properties available for sale or lease over a given period, showing how quickly new or existing supply is being sold or rented.

Valuation & Investment

Adverse Possession

Adverse possession (acquisitive prescription) is a doctrine in some legal systems, especially common-law ones, under which a person who occupies land owned by another openly, continuously and without the owner's permission for a statutory period can acquire ownership of it.

Ownership & Rights

Affidavit

Sworn written statement used in legal evidence, presented in real estate cases, accepted as evidence before judiciary.

Legal & Regulatory

Affordable Housing

Affordable housing refers to housing solutions offered at prices or financing terms within reach of low- and middle-income households, with direct or indirect government support, so that they can own or rent a suitable home without its costs consuming a burdensome share of their income.

Property Types

Aging Analysis

Report categorizing arrears by delay period: 30, 60, 90, 120+ days, helping prioritize collection and assess risks.

Financial & Accounting

Agricultural Land

Agricultural land is land whose approved use is agricultural, such as farms, orchards, palm groves and fields, inside or outside the urban boundary, where the farming activity requires an agricultural register entry or licence from the Ministry of Environment, Water and Agriculture (MEWA).

Property Types

AI in Real Estate

AI in real estate is the use of algorithms that learn from data — machine learning, natural-language processing and computer vision — for property tasks such as estimating prices and rents, scoring leads, answering enquiries automatically, analysing photos and floor plans, and forecasting market trends.

Real Estate Technology

Amenities

Amenities are the services and facilities, both around a property and within it, that make it more attractive to buyers and tenants and support its rent and value.

Valuation & Investment

Amicable Resolution

Amicable resolution is settling a dispute by agreement of the parties without a binding court judgment or arbitral award, whether through direct negotiation or with the help of a neutral third party by mediation, conciliation or settlement.

Disputes & Resolution

Amortization

Distribution of asset or loan cost over set time period through regular installments, common in real estate loans and long-term investments.

Financial & Accounting

Amortization Schedule

An amortization schedule is a table showing every installment of a financing with its due date and amount, how it splits between profit (term cost) and principal, and the balance remaining after each installment, until the balance reaches zero at the end of the term.

Real Estate Financing

Annual Lease

One-year lease, most common in Saudi Arabia, providing stability at lower rent than short-term contracts.

Contracts & Leasing

Annual Report

Comprehensive summary of financial and operational property performance during the year, presented to owner and investors, includes revenues, expenses, profits.

Financial & Accounting

Apartment

An apartment is a self-contained residential unit within a multi-unit or multi-storey building, with its own entrance and one or more rooms, a kitchen and bathrooms, sharing common parts such as the land, entrances, stairs, lifts, parking and tanks with the other units.

Property Types

API Integration

API (application programming interface) integration is connecting different systems through standard programming interfaces so they exchange data and execute operations automatically without manual entry.

Real Estate Technology

Appeal

An appeal is the ordinary way of challenging a first-instance judgment before a court of appeal: the party against whom judgment was given, or whose requests were not fully granted, asks for the ruling to be reversed or amended, and the review may also end with the judgment being upheld.

Legal & Regulatory

Appraisal

An appraisal is a written, documented opinion of a property's value at a specific date, prepared by an accredited valuer for a defined purpose such as sale, mortgage, insurance or litigation, and delivered in a report that sets out the scope of work, methods, assumptions and concluded value.

Valuation & Investment

AR Real Estate

AR (augmented reality) in real estate is technology that overlays digital elements — furniture, finishes or information — on the real view of a property captured by a phone camera or smart glasses, so the user sees the actual property with virtual additions at the same time.

Real Estate Technology

Arbitration

Resolving dispute through private arbitrator issuing binding decision, faster than general courts, usually agreed upon in contract clauses.

Legal & Regulatory

Architect

An architect is an engineer specialized in designing buildings and spaces that combine function, aesthetics, sustainability and safety requirements; the architect prepares the architectural drawings, coordinates them with the structural, electrical and mechanical disciplines, and may supervise construction.

Construction & Development

Auction Catalog

An auction catalog is the document presenting the properties offered at auction, their details and the bidding terms; in Saudi Arabia it is the «real estate auction bulletin», which must be listed on REGA's platform before publication and announced at least five days ahead.

Auctions & Sales

Auction Deposit

An auction deposit is the amount a bidder pays before taking part to prove seriousness; Saudi Arabia's auction regulation calls it the «entry amount», caps it at 5% of the accredited valuation, and requires its type to be stated: earnest, advance on price or refundable security.

Auctions & Sales

Auction Fees

Auction fees are the amounts borne by the buyer or seller on top of, or out of, the award price to complete an auction sale; in Saudi Arabia they mainly comprise the brokerage commission (sa'y), VAT on it and the Real Estate Transaction Tax, as set in each auction's terms.

Auctions & Sales

Auction Platform

An auction platform is an electronic environment in which real estate auctions are announced, bids are submitted and awards are managed; in Saudi Arabia such platforms operate only under a REGA licence and with mandatory links to REGA's electronic platform and to the national Nafath login service.

Auctions & Sales

Auction Results

Auction results are the data recording the outcome of a real estate auction — whether it was awarded, the award prices and the winning bidders; in Saudi Arabia they are entered in REGA's Real Estate Auctions Register, from which REGA publishes periodic statistical indicators.

Auctions & Sales

Auctioneer

An auctioneer is the qualified person who conducts the bidding, announces bids and awards the sale to the highest bidder; Saudi rules call this person the «real estate auction manager», who must work for a licensed establishment and be registered with REGA.

Auctions & Sales

Awqaf Authority

The General Authority for Awqaf (GAA) is a Saudi public authority with independent legal personality and financial and administrative autonomy, established by a law issued by Royal Decree No. (M/11) dated 26/2/1437H to regulate, protect and develop endowments (waqfs) in line with their founders' conditions.

Ownership & Rights

B

Balady Platform

Balady is Saudi Arabia’s unified electronic platform for municipal services, run by the Ministry of Municipalities and Housing (MOMAH).

Saudi Regulations

Balloon Payment

A balloon payment is a final installment much larger than the regular ones, because part of the principal is deferred to the end of the term rather than spread across the installments — lowering the monthly payment but concentrating the obligation at maturity.

Real Estate Financing

Bare Ownership

Bare ownership is ownership of real estate stripped of the right to use it: the owner keeps the property's substance and the power to sell, mortgage or gift it, while a usufructuary uses and exploits it until the usufruct ends and full ownership reunites.

Ownership & Rights

Basement

A basement is a floor located wholly or partly below ground level in a building, usually used for parking, storage or service and plant rooms such as generators, pumps and water tanks; in some commercial buildings it may be used for activities permitted by the licence.

Property Types

Bidder

A bidder is the natural or legal person who submits price offers in a real estate auction in order to buy the property, its usufruct or a lease of it; REGA's Real Estate Auctions Regulation calls this person a «competitor», and each bid binds the bidder until it is outbid or the auction closes.

Auctions & Sales

Big Data

Big data in real estate refers to large, varied and fast-updating datasets — transaction records, leases, listings, maps, population, mobility and services data — collected and analysed with specialised tools to uncover patterns and trends that small datasets cannot show.

Real Estate Technology

Blockchain Real Estate

Blockchain in real estate is the use of encrypted distributed-ledger technology — which stores entries in linked blocks that are hard to alter retroactively — to record property and transaction data, or to represent ownership rights as digital tokens that can be traded and traced.

Real Estate Technology

Blog

A real estate blog is a section of a real estate firm's website where dated articles are published regularly, such as how-to guides, market news, regulatory explainers and neighbourhood analyses, to attract visitors from search and answer engines and build trust in the firm's expertise.

Real Estate Marketing

Blueprint

A blueprint, or engineering drawing set, is the collection of technical drawings and documents that describe a building precisely — its plans, elevations, sections, dimensions, structural elements and electrical, mechanical and plumbing systems — and against which construction is carried out once approved.

Construction & Development

Bodies Competent for Rental Disputes

Three bodies handle rental disputes in Saudi Arabia: the enforcement court for a documented contract as an enforcement instrument, the general court for substantive claims, and the Saudi Real Estate Arbitration Center for arbitration and settlement.

Disputes & Resolution

Boundary Dispute

A boundary dispute is a disagreement between two or more neighbouring owners over the location of the dividing line between their properties or over their dimensions and areas, resolved by reference to deeds, approved plans and land surveys and, judicially, before the General Court.

Ownership & Rights

Brand Positioning

Brand positioning is the intended place a real estate office or developer seeks to occupy in its audience's minds relative to competitors, usually summarised in a statement that defines who we serve, which category we compete in, what different benefit we offer and why clients should believe us.

Real Estate Marketing

Branding

In real estate, a brand is the distinctive identity of an office, developer or project — its name, logo, colours, tone of voice and client promise — together with the impressions clients form from dealing with it.

Real Estate Marketing

Breach Notice

A breach notice is a written notice from one contracting party to the other that identifies the obligation breached, demands that it be cured within a set period, and states the consequences of failing to do so, such as termination or a claim for compensation.

Disputes & Resolution

Breach of Contract

Failure of either party to comply with contract terms, like non-payment or property misuse, giving the affected party right to claim compensation or termination.

Contracts & Leasing

Bridge Loan

A bridge loan is short-term financing that covers a temporary timing gap — such as buying a new property before selling the old one, or funding a developer until long-term financing arrives — and is repaid from a specific expected source such as a sale.

Real Estate Financing

Brokerage Fee

Fees real estate broker charges for services in completing sale or rental deal, set as percentage of deal value or fixed amount.

Financial & Accounting

Budget Property

A budget property is a residential property priced or rented in the lower to middle tier of the market, with compact spaces and basic specifications and finishes, aimed at low- and middle-income households and individuals seeking low housing costs.

Property Types

Budget Variance

Difference between planned and actual figures in budget, helping identify problems and adjust future property planning.

Financial & Accounting

Budgeting

Advance financial planning for expected property income and expenses, helping manage cash flow and plan maintenance and investment.

Financial & Accounting

Building Code

A building code is the set of mandatory technical requirements governing the design, construction, operation, maintenance and alteration of buildings to ensure safety and public health.

Construction & Development

Building Maintenance

Building maintenance is the periodic and emergency work needed to keep a building’s structure, systems and common facilities sound and safe, such as lifts, pumps, tanks, generators, fire systems, central air-conditioning, roof waterproofing, façades and electrical rooms.

Property Management

Building Permit

Official municipality license to construct or renovate building, mandatory before starting work, specifying allowed specifications and limits.

Saudi Regulations

Buy and Hold

Buy and hold is a long-term real estate investment strategy in which a property is bought and kept for many years to earn steady rental income and benefit from gradual appreciation, while minimising repeated purchase and sale costs.

Valuation & Investment

Buyer Persona

A buyer persona is a semi-fictional profile of the ideal client for a property or project, built from real customer data — age, income, household size, motives for buying or renting, concerns and the channels where they search — and used to guide marketing messages and product and service design.

Real Estate Marketing

Buyer's Premium

A buyer's premium is a percentage added to the hammer price and paid by the buyer to the auction house for its services; the concept is common in Western markets, and its Saudi real estate equivalent is the «sa'y», the brokerage commission that auction terms often place on the buyer.

Auctions & Sales

C

Call to Action (CTA)

A call to action (CTA) is the element of an ad, page or message that asks the recipient to take one specific, immediate step, such as "Book a viewing", "Chat on WhatsApp" or "Request the floor plan and price".

Real Estate Marketing

Capital Gain

Profit from selling property at price higher than purchase cost, may be subject to taxes in some countries, exempt in Saudi Arabia for individuals.

Financial & Accounting

Capitalization Rate (Cap Rate)

The capitalisation rate (cap rate) is the ratio of a property's annual net operating income to its value or purchase price, used to convert income into value and to compare returns on income-producing property; a property with SAR 800,000 net income and SAR 10,000,000 value has an 8% cap rate.

Valuation & Investment

Cash Closing

Daily procedure to reconcile cash receipts with records and deposit in bank, ensuring accounting accuracy and preventing loss.

Financial & Accounting

Cash Flow

Net money flowing in and out of real estate investment monthly, positive means profit and negative means deficit, basis of investment decisions.

Financial & Accounting

Certified Appraiser

An accredited (certified) valuer is a natural or legal person licensed by the Saudi Authority for Accredited Valuers (TAQEEM) to practise valuation in a specific sector such as real estate and entered in the valuers' register; only such a valuer may issue signed valuation reports that carry weight.

Valuation & Investment

Civil Engineer

A civil engineer is an engineer specialized in planning, designing, building and maintaining structures and infrastructure — buildings, roads, bridges, water and sewer networks and dams — with a focus on structural safety, soil behaviour and material properties.

Construction & Development

Class Action

A class action is a lawsuit brought by one or more claimants on behalf of a large group of injured people who share the same legal cause and common facts, so that a judgment benefits group members without each filing a separate case.

Disputes & Resolution

Clear Title

A clear title is a valid title deed proving the seller's ownership of a property with no mortgage, attachment, suspension, pending dispute or third-party right restricting its disposal, so ownership can pass to the buyer in full and immediately.

Ownership & Rights

Cloud Storage

Cloud storage is keeping data and files on servers run by a service provider and accessed over the internet rather than on a business's local devices, allowing access from anywhere, sharing and automatic backup.

Real Estate Technology

Co-Borrower

A co-borrower is a second person who signs the home finance contract with the main borrower and whose income is combined with his to raise the possible finance amount, becoming obliged to the lender to repay as the contract provides, usually on a joint and several basis.

Real Estate Financing

Co-Ownership

Co-ownership is the ownership of a single property by two or more persons, either in undivided shares (shuyu') or as separately owned units sharing common parts, as in apartment buildings and compounds, with each partner holding a defined proportional share.

Ownership & Rights

Co-Signer

Person guaranteeing tenant's obligations financially and legally, becoming liable for debts if tenant defaults on payment.

Contracts & Leasing

Co-working Space

A co-working space is a flexible workplace run by a single operator in which different individuals and companies use shared desks, offices and facilities in return for an hourly, daily or monthly membership, instead of leasing a separate office on a long lease.

Property Types

Cold Leads

Cold leads are prospective customers who have shown only initial or weak interest, such as downloading a guide or making a general enquiry without a defined budget or timeframe, and are not expected to decide soon.

Real Estate Marketing

Collection Efficiency

Ratio of collected rent to due rent, indicator of property management effectiveness, targeting above 95%.

Financial & Accounting

Commercial Lease

Lease for commercial properties like shops, offices, and warehouses, subject to different terms than residential with potentially longer durations.

Contracts & Leasing

Commercial Property

Commercial property is real estate legally designated for an economic activity other than housing, such as shops, showrooms, offices, malls and warehouses, as set by the commercial or mixed use approved in its plan and building permit.

Property Types

Commercial Real Estate

Properties designated for commercial activities like shops, offices, warehouses, and hotels, subject to different regulations and taxes than residential.

Saudi Regulations

Commercial Register

Official document proving business registration, required for real estate offices and commercial tenants, issued by Ministry of Commerce.

Saudi Regulations

Commercial VAT

Commercial VAT is the 15% value added tax charged on leases of non-residential property, such as shops, offices, warehouses, land and showrooms, and on hotel stays and serviced apartments, whenever the landlord is registered, or required to register, for VAT; the landlord charges it to the tenant and pays it to ZATCA.

Tax & Zakat

Commission

Percentage real estate offices take for their services, set by the Real Estate Brokerage Law at 2.5% of the deal value for sales and of the first year’s rent only for leases unless otherwise agreed in writing, and paid by the party that contracted with the broker.

Financial & Accounting

Common Areas

Common areas (common parts) are the parts of a property intended for shared use by all owners or occupants, or whose nature requires joint ownership, such as the land, entrances, corridors, parking, tanks, ducts, services, pools, gardens, courtyards and lifts.

Property Management

Comparative Market Analysis

A comparative market analysis (CMA) is a study that compares a subject property with similar properties recently sold or leased in the same area, adjusting for differences in size, location, age and specification, to arrive at a realistic price range for selling, buying or renting.

Valuation & Investment

Compensation

Monetary amount the breaching party is obligated to pay to compensate damage to other party, determined judicially or by agreement.

Legal & Regulatory

Competitive Analysis

Competitive analysis is the systematic study of competing offices, developers and platforms in a given market — their offers, prices, commissions, channels, service quality, strengths and weaknesses — to find ways to stand out and base pricing and marketing decisions on data rather than impressions.

Real Estate Marketing

Complaint Filing

Complaint filing is the formal step by which a right-holder starts addressing a dispute before the competent body — a regulator that receives reports of violations, a court where a statement of claim is registered, or an execution, conciliation or arbitration body.

Disputes & Resolution

Completion Certificate

Document issued by municipality after building completion per permit, prerequisite for ownership registration and use, proving compliance with specifications.

Saudi Regulations

Compliance Officer

A compliance officer is the person within an organisation responsible for ensuring it complies with the laws, regulations and instructions that apply to its business, setting internal policies and procedures, monitoring their application and reporting to senior management and the authorities when needed.

Legal & Regulatory

Construction Cost

Construction cost is the total amount spent to build a structure until it is ready for occupancy, including direct costs (materials, labour, equipment and the contractor's profit) and soft costs (design, supervision, permits, soil testing, insurance and financing), usually excluding land value.

Construction & Development

Construction Loan

A construction loan is financing released in tranches tied to completed and verified construction stages, rather than as a single lump sum, to build a home on land the borrower owns or to deliver a real-estate project, and then repaid in regular installments under the contract.

Real Estate Financing

Construction Project

A construction project is an organized set of works to build a new building or to extend, renovate or alter an existing one, with a defined scope, budget and schedule, delivered by key parties: the owner (employer), the designer, the supervisor and the contractor.

Construction & Development

Content Marketing

Content marketing is a strategy of publishing useful, regular content, such as articles, guides, videos and market reports, that answers the real questions of buyers, tenants and landlords in order to attract them and build trust before they are ready to transact.

Real Estate Marketing

Contract Amendment

Changing lease terms by mutual agreement through Ejar; a documented lease’s value does not change mid-term, so rent, duration and clauses are changed at renewal.

Contracts & Leasing

Contract Annex

A supplementary document or set of clauses adding terms to the original lease; in Ejar’s unified lease, additions go through the accredited broker, and any term conflicting with the unified terms is void.

Contracts & Leasing

Contract Clause

Specific text in contract regulating particular aspect of relationship, binding on both parties unless violating law or public order.

Legal & Regulatory

Contract Disclosure

Disclosure by one party to other of material information about property, hiding may void contract, like substantial defects or legal disputes.

Legal & Regulatory

Contract Fees

Costs of authenticating contracts in Ejar, 125 SAR annually for residential and 200 SAR for the first commercial year then 400 SAR for each additional year, paid by lessor or real estate office.

Contracts & Leasing

Contract Handover

Procedure of receiving property from landlord or returning it at contract end, including a report documenting property condition and meter readings.

Contracts & Leasing

Contract Interpretation

Determining intent of contract clauses when ambiguous, interpreted in favor of obligation bearer, considering parties' common intent.

Legal & Regulatory

Contract Language

The official language of the contract, originally Arabic in Saudi Arabia; translations may be added but Arabic version is the legal reference.

Contracts & Leasing

Contract Novation

Replacing one contract party with new one by all parties' consent, voiding old contract and creating new, common in lease transfers.

Legal & Regulatory

Contract Renewal

Extension of lease for new term under same or modified terms, automatic in Ejar unless either party expresses intent to terminate 60 days before expiry.

Contracts & Leasing

Contract Template

Standardized lease contract template approved on the Ejar platform, ensuring all mandatory clauses and legally protecting both parties.

Contracts & Leasing

Contract Validity

Availability of legal conditions for contract validity: consent, capacity, subject, cause, if any missing the contract is void.

Legal & Regulatory

Contractor

A contractor is a natural or legal person who, under a construction contract, undertakes to carry out building, construction, installation or maintenance work for the employer in return for payment, without being the employer's subordinate or agent.

Construction & Development

Conversion Rate

Conversion rate is the percentage of people who completed a target action out of all who had the opportunity — such as visitors who sent an enquiry, enquirers who attended a viewing, or viewings that ended in a contract.

Real Estate Marketing

Corrective Maintenance

Corrective maintenance is repair work carried out after a fault or defect appears in a property or one of its systems, to restore it to a usable condition, such as fixing a pipe leak, replacing a failed AC compressor or dealing with a fault in the electrical panel.

Property Management

Cost Approach

The cost approach estimates a property's value by adding land value to the current cost of constructing an equivalent building, less physical, functional and economic depreciation, on the principle that a buyer will not pay more than the cost of an equivalent substitute.

Valuation & Investment

Cost Center

Organizational unit where costs are calculated independently, each property can be a cost center to analyze its profitability.

Financial & Accounting

Counter-Claim

A counterclaim is an incidental request that the defendant brings against the claimant while the original case is pending, asking for a judgment in his own favour on a related right such as set-off or compensation, which the same court hears together with the original claim whenever possible.

Disputes & Resolution

Court Fees

Court fees, known in Saudi Arabia as "judicial costs", are sums the state levies on claims and requests filed with the courts, borne in principle by the losing party.

Disputes & Resolution

Court Judgment

A court judgment is the decision a competent court issues on the merits of a case before it, settling the dispute between the parties and defining their rights and obligations; it is recorded in a judgment deed (sakk) stating the operative ruling and its reasons.

Legal & Regulatory

Credit Bureau (Simah)

The Saudi Credit Bureau (SIMAH) is the Kingdom's first licensed credit information company, collecting credit data on individuals and businesses from members such as banks, finance and telecom companies and issuing credit reports and scores to lenders under Saudi Central Bank supervision.

Real Estate Financing

Credit History

A credit history is a documented record held by a licensed credit bureau containing a person's current and past credit dealings, such as finance, cards, installments and guarantees, and how regularly he has repaid, which lenders review with his consent before granting finance.

Real Estate Financing

Credit Score

A credit score is a statistical number calculated by a credit bureau from an individual's credit record, expressing the likelihood that he will repay in the future, and lenders use it as one of the factors in deciding whether to grant finance and on what terms.

Real Estate Financing

Crisis Management

Crisis management in real estate is the advance planning, preparedness, response and recovery for emergencies that threaten a building, its occupants’ safety, its income or its reputation, such as fires, floods and heavy rain, power or water cuts at the height of summer, people trapped in lifts, structural damage, security incidents, pandemics, and economic shocks causing widespread payment default.

Property Management

Customer Testimonials

Customer testimonials are genuine, verifiable opinions and experiences of past customers about a real estate firm's services or a project, published as text, video or ratings on websites, social media and map listings as social proof that reassures prospects.

Real estate drone photography is capturing aerial photos and video of a property and its surroundings with a small unmanned aircraft to show location, size, views and proximity to roads and services.

Real Estate Marketing

Duplex

A duplex is a single residential unit spread over two consecutive floors connected by its own internal staircase, sold or leased as one unit even though its floor area sits on two levels.

Property Types

E

E-Invoice (Fatoorah)

Mandatory e-invoicing system in Saudi Arabia since 2021, requiring tax-liable businesses to issue standardized electronic invoices.

Financial & Accounting

E-Signature

An electronic signature is electronic data included in or linked to an electronic transaction, used to establish the signatory's identity and consent to its content; in Saudi Arabia it has the legal effect of a handwritten signature when it meets the conditions of the Electronic Transactions Law.

Real Estate Technology

Early Termination

Ending the lease before its agreed duration, either by mutual consent or for legitimate reason, potentially incurring penalties per contract clauses.

Contracts & Leasing

Easement

An easement is a real right over one property (the servient property) for the benefit of another property owned by someone else (the dominant property), such as a right of way, water channel or drainage, and it stays attached to both properties when transferred or subdivided.

Ownership & Rights

Educational Property

An educational property is a property designed or fitted out to provide education or training, such as nurseries, kindergartens, schools, educational complexes, universities and training institutes; it may operate only under a licence from the competent education authority, in addition to municipal requirements.

Property Types

Ejar Broker

Ejar-authorized broker assisting in contract authentication and follow-up, receiving nominal fees for services.

Saudi Regulations

Ejar Fees

Ejar platform service fees: 125 SAR for annual residential and 200 SAR for the first commercial year then 400 SAR for each additional year, paid by lessor or real estate office.

Saudi Regulations

Ejar Platform

A Saudi government platform to regulate the rental market and authenticate lease contracts electronically, mandatory for residential since 2018 and commercial later, supervised by the Real Estate General Authority (REGA).

Contracts & Leasing

Electrical System

A property's electrical system is the wiring and equipment that distributes electric power inside a building, from the utility connection and meter through distribution boards, circuit breakers and cables to sockets, lighting and appliances, including earthing.

Construction & Development

Electronic Payment

Rent payment through electronic channels like bank transfer, stcpay, and Mada, providing documented record and easy accounting tracking.

Financial & Accounting

Electronic Signature

Legally certified digital signature used to authenticate contracts electronically through Ejar, holding same legal force as traditional signature.

Contracts & Leasing

Electronic Title Deed

Digital ownership document issued by the Ministry of Justice with a unified 12-digit number, currently the only format accepted for title transfer, mortgage and utility linkage.

Ownership & Rights

Email Marketing

Email marketing is the sending of regular emails and newsletters to a list of customers and prospects who have agreed to receive them, presenting new properties, offers or useful content in order to keep the relationship alive and turn prospects into tenants or buyers.

Real Estate Marketing

Emergency Repair

An emergency repair is an immediate repair of a fault that threatens occupants' safety or will cause escalating damage if delayed, such as a burst water pipe, a short circuit or burning smell, a gas leak, people trapped in a lift, or an AC failure at the height of summer in a household with elderly people or children.

Property Management

Eminent Domain

Expropriation for public interest (eminent domain) is the legal procedure by which the state takes ownership of private property, or temporarily takes possession of it, for a public-interest project in return for fair compensation based on market value, only in cases the law allows.

Ownership & Rights

Encroachment

Encroachment is the taking of possession of real estate or part of it without a lawful basis, or the erection of a building, fence or plantings on land owned by someone else or by the state, infringing the owner's rights of use and possession and giving rise to removal or compensation under the law.

Ownership & Rights

Encumbrance

An encumbrance is any right or restriction held by someone other than the owner that burdens a property, limiting the freedom to dispose of or use it or affecting its value, such as a mortgage, attachment, easement, long lease, usufruct or claim annotation.

Ownership & Rights

Energy Efficiency

Energy efficiency in buildings means achieving the same level of comfort and service with less energy, through a good thermal envelope (insulated walls and roofs, low-heat-gain windows and air-tightness), high-efficiency systems for cooling, lighting and water heating, and sensible controls and operation.

Construction & Development

Entire Agreement Clause

An entire agreement clause is a contract term stating that the written contract, with its annexes, is the whole of what the parties agreed on its subject, and that it supersedes all prior negotiations, correspondence, promises and oral or written undertakings not included in it.

Legal & Regulatory

Environmental Impact

Environmental impact assessment (EIA) is a systematic study carried out before a project is built to identify and predict its likely effects on air, water, soil, biodiversity and the surrounding community, and to set measures to prevent or mitigate them.

Construction & Development

Equity

Equity in a property is the portion of its market value that actually belongs to the owner after deducting the outstanding financing balance and any other debts secured on it, calculated as: current market value − outstanding financing balance.

Valuation & Investment

Escrow Account

Bank account where funds are held by neutral third party, released when specific conditions met, used in major real estate transactions.

Financial & Accounting

Escrow Funds

Escrow funds are money deposited with a neutral third party — usually a dedicated bank account — and released to the entitled party only once agreed or legally defined conditions are met, protecting the payer from losing the money and reassuring the recipient that it is available.

Real Estate Financing

Escrow Services

Services provided by neutral parties to manage funds in real estate transactions, ensuring rights of both parties and protecting from fraud.

Financial & Accounting

Etemad Platform

Saudi platform for government procurement and competitions, including government contracts, rentals, and government real estate projects.

Saudi Regulations

Eviction

Forcing tenant to vacate the property, done only through legal channels for legitimate reasons like non-payment or contract expiry.

Contracts & Leasing

Eviction Order

An eviction order is a judicial order requiring a tenant or occupant to vacate a property and hand it over to the person entitled, enforced through the Execution Court if the occupant refuses.

Disputes & Resolution

Eviction Procedure

Legal steps landlord follows to evict tenant, including notice and then an execution request via Najiz at the Execution Court, and the landlord may not evict by force without an Execution Court order.

Legal & Regulatory

Evidence

What is presented in dispute to prove facts, including contract, receipts, photos, witnesses, electronic correspondence, basis of ruling.

Legal & Regulatory

Execution Court

The Execution Court is the court responsible for the forced enforcement of judgments and other executive instruments; its execution judge issues and supervises enforcement orders and decides enforcement disputes without re-examining the underlying right recorded in the instrument.

Legal & Regulatory

Expense Tracking

System for recording and categorizing all property expenses, helping prepare tax reports and analyze profitability, electronic systems preferred.

Financial & Accounting

Expert Witness

An expert witness — in the Saudi system simply “the expert” (khabir) — is a person with specialised technical knowledge, such as an engineer, property valuer or accountant, whose opinion is sought on technical questions the court must resolve but cannot assess itself, such as the cause of a water leak, the fair rental value or the cost of repairing damage.

Disputes & Resolution

F

Fal License

Mandatory license from the Real Estate General Authority to practice brokerage and real estate services, costing SAR 300 per year for individuals, with fines for unlicensed activity of up to SAR 200,000 under the Law, set in the violations table by place category and repetition.

Saudi Regulations

FIFO Payment System

Accounting mechanism allocating payments to oldest installments first, used in rental management to reduce arrears and organize records.

Financial & Accounting

Financial Statement

Accounting reports showing financial position of property or office, including balance sheet, income statement, and cash flows, basis of decisions.

Financial & Accounting

Finishing

Finishing is the final stage of construction that follows completion of the structure and main services, covering plaster, paint, flooring, suspended ceilings, doors and windows, sanitary and electrical fittings and façade cladding, turning the building from a shell into a usable unit.

Construction & Development

Fire Safety

Fire safety is an integrated system of design features, installations and procedures that prevent fires in a building, detect them early, limit their spread and allow safe evacuation and firefighting.

Construction & Development

Fixed Rate

A fixed rate is a profit rate (term cost) set when the financing contract is signed that does not change for its whole term — or for an agreed initial period in hybrid products — so the monthly installment stays constant and known in advance whatever happens to market rates.

Real Estate Financing

Flipping

Flipping is a short-term investment strategy in which a property is bought below its value, often because it needs renovation or the seller must sell quickly, then improved or remarketed and sold within months for a capital gain.

Valuation & Investment

Force Majeure

Exceptional events beyond control of parties preventing contract execution like natural disasters, temporarily exempting from legal liability.

Contracts & Leasing

Foreclosure

Foreclosure is the legal process by which a mortgagee recovers an unpaid debt through a court-supervised forced sale of the mortgaged property, paying the debt from the price according to the mortgage’s ranking and returning any surplus to the owner.

Real Estate Financing

Foreclosure Auction

A foreclosure auction is a forced public-auction sale of real estate seized by the Execution Court to satisfy a debt in an executive instrument, such as a mortgage-secured loan or a judgment; in Saudi Arabia it is called a forced sale or sale of seized property under the Execution Law.

Auctions & Sales

Foreign Investment

Foreign investment in Saudi real estate is the ownership of property in the Kingdom, or the acquisition of rights in rem over it such as usufruct, by non-Saudis, whether individuals, companies or funds, directly or through licensed companies and funds, under the Law of Real Estate Ownership by Non-Saudis and the Investment Law.

Tax & Zakat

Foreign Ownership

Foreign ownership is the right of non-Saudi individuals, companies and entities to own real estate or acquire other rights in rem over it in the Kingdom.

Ownership & Rights

Foundation

A foundation is the lowest part of a structure, which safely transfers the building's loads to the soil or rock and is designed not to exceed the soil's bearing capacity or cause harmful or uneven settlement between parts of the building.

Construction & Development

Fractional Ownership

Fractional ownership is holding a defined share of a property or property portfolio jointly with others, so an investor can enter the real estate market with less than the full price and shares returns and risks in proportion to their stake.

Real Estate Technology

Freehold

Freehold, in Saudi terms full ownership, is permanent ownership with no time limit over both the bare title and the use of a property, giving the owner alone the right to use and exploit it and to dispose of it by sale, gift, mortgage, endowment or bequest, and passing to his heirs on death.

Ownership & Rights

Furnished Lease

Lease where property comes fully furnished, usually short-term, with higher rent than unfurnished due to included furniture and appliances.

Contracts & Leasing

Furnished Property

A furnished property is a residential or commercial unit let together with its furniture and basic appliances so that it is ready for immediate use without the tenant having to furnish it; its rent is usually higher than that of an equivalent unfurnished unit to compensate for the value and wear of the furniture.

Property Types

G

Garden Apartment

A garden apartment is a ground-floor residential unit in a multi-unit building with an attached courtyard or outdoor garden reserved for its occupants, combining the cost of a flat with the outdoor space typical of villas.

Property Types

Gift Deed

A gift deed is the official document proving that ownership of a property has passed from a donor to a donee during the donor's lifetime and without consideration.

Ownership & Rights

Good Faith

Legal principle obligating contract parties to deal honestly and fairly, protecting contractual relationship and preventing exploitation or fraud.

Contracts & Leasing

Good Faith Clause

Clause obligating parties to deal in good faith during contract execution, fundamental principle assumed even if not expressly stated.

Legal & Regulatory

Governing Law

Governing law (applicable law) is the legal system that governs a contract’s interpretation, validity and effects and the settlement of disputes arising from it; it is usually fixed by an express clause in the contract.

Legal & Regulatory

Green Building

A green building is one designed, built and operated to reduce energy, water and material use and to limit emissions and waste while providing a healthy indoor environment, with its performance usually verified by a rating system such as Saudi Arabia's Mostadam or the US LEED.

Construction & Development

Gross Income

Total rental revenue before any expense deductions, used for calculating occupancy rates and gross return on investment.

Financial & Accounting

H

Hammer Price

The hammer price is the final price at which an auction is awarded to the highest bidder, known in Saudi Arabia as the award price (sa'r al-tarsiya); it is the basis of the sale contract and of commission and tax calculations, and it excludes the costs added on top of it.

Auctions & Sales

Handover

Handover is the act of enabling the buyer or owner to actually possess and use a property once its construction or fit-out is complete, usually documented in a handover report recording its condition and conformity with the agreed specifications.

Construction & Development

Hearing

A hearing is the scheduled session in which the court circuit examines a case, hears the parties and receives their memoranda and evidence; what happens is recorded in the case minutes (dabt) under the judge’s supervision.

Disputes & Resolution

Highest Bid

The highest bid is the largest amount offered by a bidder in a real estate auction that is not topped within the set time; the auction is awarded on it if it meets the minimum acceptable award value or if the owner agrees in writing to accept it.

Auctions & Sales

Home Equity Loan

A home equity loan is financing secured by a registered mortgage on a property the borrower already owns, sized on its “equity” — market value minus any outstanding financing — and used for purposes other than buying a home, such as renovation, education or a business.

Real Estate Financing

Home Staging

Home staging is preparing a property for sale or rent — cleaning, decluttering, removing personal items and adding temporary or virtual furniture — so that it looks its best in viewings and photos and helps buyers or tenants imagine living there.

Real Estate Marketing

Homeownership Program

Saudi initiative targeting raising citizen homeownership to 70% by 2030, including loans, financial subsidies, and land grants.

Saudi Regulations

Hot Leads

Hot leads are prospective customers who have shown a clear, near-term intention to buy or rent, for example by requesting a viewing, asking about reservation steps or stating a budget and an imminent move date.

Real Estate Marketing

Hotel Property

A hotel property is a building or complex designed and equipped to provide overnight stays to tourists for a fee together with hospitality services, such as hotels, resorts, hotel villas and hotel apartments, and in Saudi Arabia it may only be operated under a Ministry of Tourism licence.

Property Types

HVAC

HVAC (heating, ventilation and air conditioning) refers to the mechanical systems that control temperature, humidity, air quality and air movement inside a building, including cooling units, ductwork, extract and ventilation fans and controls.

Construction & Development

I

Ijara

Finance ijara (ijara ending in ownership) is a financing structure in which the financier owns the property and leases it to the customer for a set period at periodic rent, with ownership passing to the customer at the end by gift or sale as the contract provides.

Real Estate Financing

Income Approach

The income approach is one of the three valuation approaches; it estimates a property's value by converting its expected future income, such as rent net of expenses, into a single present value, either by capitalising a representative year's income or by discounting projected cash flows.

Valuation & Investment

Indemnification

Undertaking by one party to bear losses of other in specific cases, common clause in commercial contracts, protecting from potential liability.

Legal & Regulatory

Industrial Property

An industrial property is land or a building used for manufacturing, assembly, workshops and related storage, usually in an industrial city or industrial zone, whose operation requires an industrial licence, environmental approvals and stricter safety rules than commercial property.

Property Types

Influencer Marketing

Influencer marketing is a marketing method in which a real estate firm or developer engages a content creator with a social media following to present a property, project or real estate service to their audience in return for a fee or benefit.

Real Estate Marketing

Infrastructure

Infrastructure is the basic networks and facilities that serve land and buildings — roads and bridges, water, sewage and storm-water drainage networks, electricity and telecommunications, and public transport.

Valuation & Investment

Inheritance

Inheritance is the transfer of the money and financial rights left by a deceased person, including real estate, to his living heirs by force of Sharia and law, after funeral costs, payment of his debts and execution of his will within one-third.

Ownership & Rights

Inheritance Auction

An inheritance auction is the auction sale of estate real estate that cannot be divided in kind without harm or on whose partition heirs disagree; the price is shared by Sharia shares after debts and bequests, and the sale may be court-ordered or agreed.

Auctions & Sales

Inheritance Share

An inheritance share is the portion of an estate, including real estate, due to each heir, either as a fixed Sharia share (a half, quarter, eighth, two-thirds, third or sixth) or as a residuary share of what remains, depending on kinship and which other heirs survive.

Ownership & Rights

Input VAT

Input VAT is the value added tax a registered person incurs on goods and services it buys or imports for use in its economic activity, which it may deduct from the output VAT it collects, provided the purchases relate to taxable supplies at the standard or zero rate.

Tax & Zakat

Interest Rate

An interest rate is the cost of borrowing money expressed as an annual percentage of the amount borrowed; it is set in the market under the influence of the central bank's policy rates, interbank lending costs and the borrower's risk, so central banks do not set it directly for individuals.

Real Estate Financing

Interim Measure

An interim measure is a temporary court order issued to protect a threatened right or preserve an existing situation until the underlying dispute is decided, without deciding the merits.

Disputes & Resolution

Interior Design

Interior design is the planning and fitting out of a building's interior spaces — furniture layout, lighting, colours, materials, ceilings, floors and fixed fittings — to achieve function, comfort and visual identity within safety requirements.

Construction & Development

Inventory Management

Inventory management in a property is recording the furniture, appliances and fittings in a furnished unit or building, describing each item’s condition, quantity, photos and sometimes serial numbers, then checking them at the tenant’s move-in and move-out and during periodic inspections, and identifying what is damaged, missing or due for replacement.

Property Management

Investment Property

Investment property is property (land, a building or part of either) held to earn rental income, capital appreciation or both, rather than for the owner's own use in operations or for sale in the ordinary course of business.

Valuation & Investment

IoT in Real Estate

IoT (Internet of Things) in real estate is a network of internet-connected devices and sensors in buildings — smart meters, air-conditioning controls, electronic locks, cameras, and leak and fire sensors — that collect data and allow remote monitoring and control.

Real Estate Technology

Iqama (Residency)

Residency document for foreign residents in Saudi Arabia, replacing national ID in transactions, required for Ejar contract authentication.

Saudi Regulations

Islamic Financing

Islamic real estate financing is property finance built on Sharia-compliant contracts such as murabaha, ijara ending in ownership, diminishing musharaka and tawarruq, so the financier's return is profit from a sale, rent or partnership tied to a real asset rather than interest on a cash loan.

Real Estate Financing

J

Janitorial Services

Janitorial services are the routine cleaning of a property’s common areas, façades, glazing, car parks, public washrooms and lifts, collecting waste from the building and moving it to bins, and seasonal deep cleaning, often supplemented by pest control and tank cleaning through specialist providers.

Property Management

Joint Tenancy

Joint tenancy is a common-law form of co-ownership in which two or more persons hold property in equal shares under a single title, and on the death of one the share passes automatically to the surviving owners by right of survivorship rather than forming part of the deceased's estate.

Ownership & Rights

Judgment Execution

Judgment execution is the stage at which a court judgment or executive instrument is turned into reality, by collecting the amount awarded, evicting from a property or compelling the losing party to act, through the Execution Court and its circuits, by force if necessary.

Disputes & Resolution

Judicial Contract Rescission

Judicial rescission is the ending of a bilateral contract by court judgment at the request of one party because the other failed to perform after being formally notified, with compensation awarded where warranted.

Disputes & Resolution

Jurisdiction

Jurisdiction is the authority of a particular judicial body to hear and decide a specific dispute.

Legal & Regulatory

L

Land Investment

Land investment is buying raw or subdivided land and holding or developing it to earn a return from its appreciation as the city expands and services arrive, or from developing it and then selling or leasing it.

Valuation & Investment

Land Plot

A land plot is a portion of land with a defined area, dimensions and boundaries, identified by a plot number in an approved subdivision plan or described in a title deed, whose permitted building and use are set by the building system and land-use rules that apply to its location.

Property Types

Land Survey

Land surveying is the measurement of land to fix its location, boundaries, dimensions, area and coordinates with specialised equipment, issued as a survey report or 'survey decision' relied on for deeds, cadastral registration, building permits, subdivision and merger.

Ownership & Rights

Land Use

Permitted purpose of land per urban planning, defining if it can be built residentially, commercially, or industrially.

Saudi Regulations

Landlord Obligations

Landlord's legal duties like delivering habitable property, maintaining structural parts, respecting tenant privacy, not breaching contract.

Legal & Regulatory

Late Fee

A charge some landlords stipulate for late rent; Ejar's unified residential lease has no late-fee clause, and Article 178 of the Civil Transactions Law excludes money obligations such as rent from compensation fixed in advance.

Financial & Accounting

Late Payment Notice

Official notice sent to tenant when late on rent payment, first step in collection procedures before resorting to legal action.

Financial & Accounting

Lead Generation

Lead generation is the set of methods a brokerage or developer uses to attract people interested in buying, renting or selling and to obtain their contact details — through digital ads, search engines, social media, sign-up forms, events and referrals — with a view to converting them into deals.

Real Estate Technology

Leasehold

Leasehold, in common-law systems, is the right to possess and use a property for a long fixed term, which can reach 99 years or more, in return for rent, after which the land and buildings revert to the original owner.

Ownership & Rights

Legal Fees

Legal fees are the payment a licensed lawyer receives from the client for advice, advocacy or managing a dispute.

Disputes & Resolution

Legal Notice

Official notice sent through Notary Public to inform other party of claim or warning, preliminary step before litigation.

Legal & Regulatory

Legal Opinion

A legal opinion is a written assessment prepared by a licensed lawyer on a specific issue or transaction, setting out the applicable laws, the validity of the proposed act, the legal risks and recommendations, based on the facts and documents provided.

Legal & Regulatory

Legal Representation

Hiring a licensed attorney to represent a party in real estate disputes; not mandatory in rental disputes before the General Court, where a party may plead in person, but useful in complex cases.

Legal & Regulatory

Lessee

The party who rents the property from the owner for paid rent, known as the second party, with rights and obligations under rental law.

Contracts & Leasing

Lessor

The party owning the property who leases it for agreed rent, known as the first party in the lease contract with specific rights and obligations.

Contracts & Leasing

Liability

Legal obligation for damages or losses, may be contractual from contract or tortious from negligence, requiring compensation.

Legal & Regulatory

Lien

A lien, in Saudi terms a privilege (haq al-imtiyaz), is an accessory right in rem granted by law to a particular creditor because of the nature of his debt, giving him priority over other creditors in being paid from the debtor's assets or from a specific property.

Ownership & Rights

Life Estate

A life estate, in Saudi terms a lifetime usufruct, is a right in rem allowing its holder (the usufructuary) to use and exploit a property owned by someone else for the rest of his life.

Ownership & Rights

Liquidity

Real estate liquidity is how easily and quickly a property can be turned into cash at a price close to its fair market value without a large discount.

Valuation & Investment

Listing Description

A listing description is the written text accompanying a property ad, setting out the property's type, location, area, layout, condition, price, the right offered (sale or lease), its features and any restrictions, in clear language that answers the client's questions before they call.

Real Estate Marketing

Listing Photos

Listing photos are the still photographs of a property published with its ad on property platforms, social media and print, and are often the first thing a viewer judges the property by.

Real Estate Marketing

Loan Application

A loan application (home finance application) is the formal request a prospective borrower submits to a licensed bank or finance company, containing personal, financial and property data and supporting documents; it is the basis for assessing creditworthiness and issuing a finance decision.

Real Estate Financing

Loan Default

Loan default is a borrower’s failure to pay financing installments on the dates set in the contract; it begins with a single missed installment and can develop into persistent default that entitles the financier to start collection and then enforce against the security.

Real Estate Financing

Loan Modification

Loan modification is a written agreement between financier and borrower to change the terms of existing financing — such as extending the term, lowering the installment or granting a grace period — to make repayment easier before arrears turn into default.

Real Estate Financing

Loan Tenure

Loan tenure is the period agreed in the contract for fully repaying a home finance through periodic installments; it directly affects the monthly installment and the total cost of finance: the longer the term, the lower the installment and the higher the total profit paid.

Real Estate Financing

Loan-to-Value (LTV)

Loan-to-value (LTV) is the ratio of the home finance amount to the value of the financed property, which in turn sets the minimum down payment the buyer pays from his own funds; a 90% LTV means financing 90% of the value and paying at least 10%.

Real Estate Financing

Location Analysis

Location analysis is the systematic study of the spatial factors around a property — accessibility, proximity to roads and services, neighbouring land uses and the permitted building regulations — to estimate how they affect its value, income and ability to sell or lease.

Valuation & Investment

Loft

A loft is a design type of residential or work unit defined by a high ceiling and an open plan with few internal walls, often with a mezzanine level for sleeping or working, large windows and exposed structure or services.

Property Types

Logistics Facility

A logistics facility is an industrial or commercial property used to receive, store, sort and distribute goods, such as large warehouses, distribution centres, freight hubs and cold stores; it is located near main roads, ports and airports to cut transport time and cost.

Property Types

Long-Term Rental

A long-term rental is the lease of a property for one year or more, usually under an annual or multi-year contract, in which the property serves as a permanent home or business premises.

Property Types

Luxury Property

A luxury property is a residential or commercial property in the top tier of the market in terms of price, location, design quality, finishes and amenities, such as large villas and upper-floor apartments in prime or waterfront locations; it targets a limited pool of high-net-worth buyers and tenants.

Property Types

M

Maintenance Cost

Expenses for keeping property in good condition, including periodic and preventive repairs, typically 1-2% of property value annually.

Financial & Accounting

Maintenance Request

A maintenance request is a report from a tenant to the owner or property manager about a fault or problem in the unit or building; it is logged with a reference number, date and time, classified by priority, assigned to a technician or contractor and tracked until closed.

Property Management

Management Agreement

A management agreement is the written contract between a property owner and a property management establishment that sets out the scope of services, the manager's powers, the fee and how it is calculated, the term, how it ends and the reports to be provided; it is the reference point for resolving any dispute between the parties.

Property Management

Management Fee

A management fee is the amount a property management establishment charges the owner for managing their property, usually calculated as a percentage of rent actually collected, or as a fixed monthly or annual amount per unit or for the whole property.

Property Management

Market Analysis

Real estate market analysis is a systematic study of supply, demand, prices, rents, competition and regulation for a specific area and property type, carried out to assess the opportunities and risks of an investment or development before a decision is made.

Valuation & Investment

Market Saturation

Market saturation is the state in which the supply of a particular property type in a specific area exceeds the actual demand able to absorb it, so marketing and vacancy periods lengthen, rents or prices fall, or owners resort to incentives such as free months and discounts.

Valuation & Investment

Market Trends

Market trends are sustained, measurable movements over time in prices, rents, demand, supply and the preferences of buyers and tenants, tracked with indicators and data to distinguish lasting change from temporary fluctuation.

Valuation & Investment

Market Value

Market value is the estimated amount for which a property should exchange on the valuation date between a willing buyer and a willing seller in an arm's-length transaction, after proper marketing, where each party acted knowledgeably, prudently and without compulsion.

Valuation & Investment

Marketing Budget

A marketing budget is the amount a real estate firm or developer allocates to marketing activities over a set period, such as a financial year, a campaign or a project's life, distributed across channels and activities according to measurable goals such as leads, reservations and deals.

Real Estate Marketing

Marketing ROI

Marketing ROI is a financial metric that measures the additional profit generated by marketing activity relative to its cost, usually calculated as (profit attributed to marketing − marketing cost) ÷ marketing cost × 100%.

Real Estate Marketing

Master Lease

Comprehensive lease for entire property or multiple units, signed by main tenant who then leases units to subtenants with landlord's permission.

Contracts & Leasing

Mediation

Resolving dispute with help of neutral third party proposing non-binding solutions, faster and cheaper than litigation, and based on both parties’ consent.

Legal & Regulatory

Medical Facility

A medical facility is a property, or part of one, that is fitted out and licensed to provide healthcare services, such as hospitals, medical complexes, clinics, laboratories, imaging centres and pharmacies; it may operate only after obtaining a licence from the competent health authority.

Property Types

Milestone

A milestone is a specific event in the schedule that marks the completion of a phase or a key deliverable — such as completion of foundations, the frame, finishes or handover — and has no duration of its own; it is used to measure progress and report to the parties and is often linked to payments.

Construction & Development

Ministry of Housing

Saudi government entity formerly responsible for the housing sector, which launched the Ejar and Sakani platforms before merging in 2021 into the Ministry of Municipal, Rural Affairs and Housing; Ejar is now supervised by the Real Estate General Authority (REGA).

Saudi Regulations

Mixed-Use Property

A mixed-use property is a property or project that combines more than one use in a single building or site, such as residential, retail, office and hotel.

Property Types

Model Unit

A model unit is a fully fitted and furnished residential or commercial unit built within a project or at a sales centre so prospective buyers can view it and picture the finished product in terms of space, finishes and layout.

Real Estate Marketing

Modular Construction

Modular construction is an off-site building method in which three-dimensional modules, such as complete rooms or apartments with their finishes and services, are manufactured in a factory and then transported and assembled on prepared foundations on site.

Construction & Development

Monthly Lease

Short-term lease that renews monthly, common in furnished and serviced apartments, offering flexibility at higher rent.

Contracts & Leasing

Monthly Summary

Periodic report for owner summarizing monthly financial performance, including revenues, expenses, arrears, sent automatically.

Financial & Accounting

Mortgage Escrow Account

A mortgage escrow account is a lender-managed account, common with US mortgages, into which part of each monthly payment is set aside to pay the borrower’s annual property taxes and insurance premiums on time, protecting the collateral.

Real Estate Financing

Mortgage Installment

A mortgage installment is the periodic amount a borrower pays the financier each month to repay a home finance, made up of part of the principal and part of the term cost (profit or interest); it stays fixed under fixed-rate finance and changes at each repricing under variable-rate finance.

Real Estate Financing

Mortgage Insurance

Mortgage insurance is cover that protects the financier against loss if the borrower cannot pay or the debt cannot be fully recovered; in the US it is known as private mortgage insurance (PMI), typically required when the down payment is below 20% and paid for by the borrower.

Real Estate Financing

Mortgage Rate

A mortgage rate is the annual cost rate of a home finance that the financier charges for deferred payment; in Islamic finance it is called the profit margin or term cost, and it must also be shown as an annual percentage rate (APR) that includes unavoidable fees.

Real Estate Financing

Move-In Checklist

A move-in checklist (unit handover-in report) is a document prepared at the start of a lease that records in detail the condition and contents of the unit — walls, floors, doors, windows, sanitary fittings, AC units, appliances, meter readings and number of keys — with dated photos, signed by landlord and tenant as the reference point at move-out.

Property Management

Move-Out Checklist

A move-out checklist (unit handover report) is a document prepared when a lease ends and the unit is vacated, recording its condition and contents and comparing them with the move-in checklist to determine whether there is damage beyond normal wear, and therefore whether the security deposit is returned in full or the cost of damage is deducted.

Property Management

Murabaha

Real estate murabaha is an Islamic financing structure in which the financier buys and takes ownership of the property the customer has chosen, then sells it to him at a deferred price equal to cost plus an agreed profit, repaid in fixed installments.

Real Estate Financing

Musharaka

Diminishing musharaka is an Islamic financing structure in which the customer and the financier co-own the property and the customer gradually buys out the financier's share until he owns it fully, usually also paying rent on the financier's share meanwhile.

Required time period to notify the other party of intent to terminate or not renew the contract, typically 60 days before expiry in Saudi Arabia.

Contracts & Leasing

O

Occupancy Certificate

Document issued through the Balady platform confirming a building is complete and fit for use, requiring a building permit issued at least six months earlier and a ten-year inherent defects insurance policy.

Construction & Development

Occupancy Rate

The occupancy rate is the share of leased units (or leased area) in the total lettable units or area of a property or portfolio, calculated as leased units divided by total units times 100; it is the complement of the vacancy rate.

Property Management

Off-Plan Sale

An off-plan sale is the sale of developed land or a real estate unit — an apartment, villa or office — before construction starts or during construction, based on approved designs and drawings, with the price paid in instalments deposited into a project-specific escrow account.

Construction & Development

Office Space

Office space is a property, or part of one, designated and licensed for office, administrative and professional activities - company headquarters, consultancies, real-estate offices and service offices - whether it is an office in a commercial building, a whole floor or a standalone office building.

Property Types

Ombudsman

An ombudsman is an independent person or office that receives individuals' complaints against administrative bodies or service providers, investigates them and issues recommendations, usually non-binding, to provide quick redress without litigation.

Disputes & Resolution

Online Auction

An online auction is a real estate auction in which bids and the award are handled on an electronic platform instead of, or alongside, an auction hall; Saudi law treats it as a real estate auction that only REGA-licensed establishments may run.

Auctions & Sales

Online Listing

An online listing is the publication of a property offer for sale or rent through a digital channel — an online property platform, a website, an app or a social media account — including photos, description, price, map location and contact details; it is now the main channel through which tenants and buyers in Saudi Arabia search.

Property Management

Open House

An open house is a showing method in which a property for sale or rent is opened to interested visitors during a pre-announced time window without individual appointments, with the broker or owner present to explain the property, answer questions and register interested parties.

Real Estate Marketing

Operating Expenses

Daily property operation costs like maintenance, utilities, management, and insurance, deducted from revenue to calculate net income.

Financial & Accounting

Opportunity Cost

Opportunity cost is the return an investor gives up by putting money into a particular real estate investment instead of the best available alternative with similar risk and time horizon — deposits, sukuk, units in a listed REIT or another property.

Valuation & Investment

Output VAT

Output VAT is the value added tax a registered person charges on its taxable supplies of goods and services and collects from customers, then reports in its periodic return and pays to ZATCA after deducting allowable input VAT.

Tax & Zakat

Overdue Payment

Rent installment not paid by due date, requiring reminder procedures then legal action if continued, such as an execution request to collect it under the documented lease.

Financial & Accounting

Owner Statement

Periodic report showing owner the details of income, expenses, and arrears for properties, with amount due after commissions.

Financial & Accounting

Owners Association

An association that must be established among owners of separated units in a shared property once they reach three or more, under the Law of Ownership, Subdivision and Management of Real Estate Units issued by Royal Decree M/85 dated 02/07/1441H.

Property Management

Ownership Transfer

Ownership transfer is the passing of title to real estate from one owner to another by a lawful cause such as sale, gift, inheritance, bequest, partition or court judgment, completed only once documented by the Ministry of Justice or registered in the Real Estate Registry.

Ownership & Rights

P

Paperless Office

A paperless office is a way of working in which documents — leases, invoices, receipts, correspondence and forms — are created, exchanged and stored digitally instead of on paper, with an organised, searchable electronic archive.

Real Estate Technology

Parking Space

A parking space is a defined space for parking a vehicle; it may be open, shaded, in a basement or in a multi-storey car park, and may belong to a residential or commercial unit or be owned and let independently.

Property Types

Payment Method

Approved method for rent payment: bank transfer, cash, check, or card, specified in contract with electronic transfer preferred for documentation.

Financial & Accounting

Payment Plan

A payment plan is an agreement between a creditor and a debtor — such as a landlord and tenant — to reschedule overdue amounts into instalments with set amounts and dates, instead of demanding everything at once or going straight to execution.

Disputes & Resolution

Payment Schedule

Organized plan for rent installments specifying amount and due date for each, helping track payments and arrears.

Financial & Accounting

Penthouse

A penthouse is a residential unit on the top floor of a building, usually distinguished by a larger area, higher ceilings, a private terrace or roof, open views and greater privacy; it is typically among the highest-priced units in the building.

Property Types

Permit Fees

Permit fees are the amounts paid to the municipality through the Balady platform for issuing construction permits and related certificates, calculated electronically according to the type of service and the project's area, use and location.

Construction & Development

Petty Cash

Small cash amount kept by office for daily small expenses, replenished periodically, expenditure must be documented.

Financial & Accounting

Plumbing

Plumbing (sanitary works) is the network of pipes, fixtures and equipment that supplies a building with cold and hot drinking water and removes wastewater and gases through drainage and vent systems.

Construction & Development

Portfolio Management

Real estate portfolio management is managing a group of property assets as a single whole to achieve the best possible return for an acceptable level of risk.

Property Management

Post-Construction

Post-construction is the phase following the physical completion of works, covering commissioning, final inspection, the occupancy certificate, handover, snag rectification and the start of operation, maintenance and warranty periods.

Construction & Development

Power of Attorney

Official authorization empowering one person to act on behalf of another, used in property management, sales, and rentals, authenticated by Notary.

Legal & Regulatory

PPC Advertising

Pay-per-click (PPC) advertising is a paid digital advertising model in which the advertiser pays the platform, such as a search engine or social network, for each click on the ad rather than for its display.

Real Estate Marketing

Pre-Approval

A mortgage pre-approval is a conditional preliminary assessment issued by a lender after reviewing the applicant's income, obligations and credit record, indicating roughly how much finance is possible before a property is chosen; it is not a final commitment to lend.

Real Estate Financing

Predictive Analytics

Real estate predictive analytics is the use of historical data, statistical models and machine-learning algorithms to estimate what is likely to happen in the property market — price and rent trends, the probability of vacancy or late payment, and demand in a given district.

Real Estate Technology

Prefabricated Construction

Prefabricated construction is the manufacture of building components in a factory under controlled conditions, such as precast concrete panels, columns, beams and slabs, steel frames, insulated sandwich panels and bathroom pods, which are then transported, installed and connected on site.

Construction & Development

Premium Property

A premium property is a property in the upper-middle tier of the market that combines a good location, above-average specifications and finishes and additional services, without reaching the price level and scarcity of luxury property; it targets households and tenants with above-average incomes.

Property Types

Prepayment Penalty

A prepayment penalty is compensation a financier charges when a borrower repays all or part of a financing before it falls due, for the profit it forgoes or the cost of reinvesting the money.

Real Estate Financing

Preventive Maintenance

Preventive maintenance is scheduled inspection and servicing of a building's systems and equipment before they fail, such as cleaning air-conditioners and changing filters, checking water tanks and pumps, testing fire alarm and suppression systems and servicing lifts, in order to extend the property's life and reduce the frequency and cost of breakdowns.

Property Management

Price Per Square Meter

Price per square metre is the value of a property or plot divided by its area in square metres, used as a standard yardstick for comparing prices across properties of different sizes, districts and cities.

Valuation & Investment

Private Auction

A private auction is an auction limited to invited or pre-qualified bidders without public announcement, used in some markets for discreet luxury sales; it is not a separate regulatory category in Saudi Arabia, where a real estate auction is defined as public bidding.

Auctions & Sales

Project Brochure

A project brochure is a printed booklet or digital file (PDF) presenting the details of a project or property, such as location, floor plans, areas, specifications, prices, payment plan and images, handed to prospects at exhibitions and sales centres or sent to them electronically.

Real Estate Marketing

Project Management

Project management in construction is the planning, organizing, leading and controlling of a project's work from concept to handover in order to deliver the required scope at the specified quality, within budget and schedule, while managing risks, contracts and communication between the parties.

Construction & Development

Property Inspection

Examining property in presence of both parties at start and end of contract to document its condition, protecting both from damage disputes later.

Contracts & Leasing

Property Management

Property management is the handling of a property's financial and administrative affairs on behalf of its owner or the holder of its usufruct, including leasing units, collecting rent, overseeing maintenance, managing tenant relations and accounting to the owner, in return for an agreed fee.

Property Management

Property Management Service

Property management (idarat amlak) is a professional service in which a licensed firm manages the financial and administrative affairs of a property on behalf of its owner or usufruct holder, for an agreed fee.

Saudi Regulations

Property Manager

A property manager is the person or establishment authorised to manage a property or portfolio on the owner's behalf, handling leasing, rent collection, maintenance follow-up, tenant relations and financial reporting within the powers written into the management agreement.

Property Management

Property Ownership

Property ownership is the broadest original real right, entitling the owner alone, within the limits of the law, to use, exploit and dispose of real estate by sale, gift, endowment (waqf), mortgage or lease, together with the right to its fruits, products and accessories.

Ownership & Rights

Property Photography

Property photography is the production of still images, and sometimes video and aerial footage, that present a property offered for sale or rent clearly and truthfully for use in real estate advertisements and marketing materials.

Property Management

Property Sale

A property sale is a contract by which the seller transfers ownership of real estate to the buyer for a cash price, effective against third parties once conveyed at the Ministry of Justice or registered in the Real Estate Registry, and normally subject to the 5% Real Estate Transaction Tax.

Ownership & Rights

Property Showings

A property showing is a visit by a prospective tenant or buyer to a property, usually by appointment arranged with the broker or owner, to inspect the unit in person before deciding to sign.

Property Management

Property Valuation

Property valuation is a professional process in which an accredited valuer estimates the value of a property or real estate interest at a specific date, on a stated basis of value such as market value and for a stated purpose such as sale, financing or litigation.

Valuation & Investment

PropTech

PropTech (property technology) is the use of digital technologies — online platforms, mobile apps, cloud computing, data analytics, artificial intelligence and tokenization — to develop, market, lease, manage, finance and register real estate.

Real Estate Technology

Provisional Balance

Temporary accounting balance before final settlement, used for review and changes with updates, settled at account closing.

Financial & Accounting

Public Auction

A public auction is an auction open to anyone meeting the participation requirements, with bids made openly and the property awarded to the highest bidder; it is the default form in Saudi law, which defines a real estate auction as «public bidding».

Auctions & Sales

Public Order

Legal principle making certain matters non-derogable, contract clauses violating public order are nullified.

Legal & Regulatory

R

Real Estate App

A real estate app is a smartphone application that provides property services — searching for and listing properties, managing leases, payments and maintenance requests, or services for landlords and tenants — through a mobile interface.

Real Estate Technology

Real Estate Auction

A real estate auction is public bidding on a property to sell it, sell its usufruct or lease it at the highest attainable price; it includes online auctions and, in Saudi Arabia, is a real estate service requiring a licence from the Real Estate General Authority (REGA).

Auctions & Sales

Real Estate Automation

Real estate automation is the automatic execution of repetitive property-management and marketing tasks by software according to predefined rules — sending payment reminders, issuing invoices, flagging expiring leases and updating listings — to reduce manual effort and human error.

Real Estate Technology

Real Estate Broker

An individual or company holding a Fal License from the Real Estate General Authority to mediate property transactions for a commission, legally required to display the license number on contracts and advertisements.

Saudi Regulations

Real Estate Brokers Association

Professional body regulating real estate brokers in Saudi Arabia, setting standards, organizing training courses, protecting member rights.

Saudi Regulations

Real Estate Bubble

A real estate bubble is a rapid, sustained rise in property prices beyond what fundamentals such as incomes, rents and financing costs can justify, driven by expectations of further gains, speculation and easy credit, and usually followed by a sharp correction.

Valuation & Investment

Real Estate CRM

A real estate CRM (customer relationship management) system is software that stores data on prospective and existing clients — buyers, tenants and owners — and tracks their communications, preferences and deal stages, helping a brokerage follow up and close more deals.

Real Estate Technology

Real Estate Cycle

The real estate cycle is the recurring pattern of property market movements through phases of recovery, expansion, oversupply and recession, during which prices, rents, occupancy, transaction volumes and new construction change, typically over several years.

Valuation & Investment

Real Estate Developer

A real estate developer is the person — usually a company with legal personality — that owns, leases or partners with the owner of land in order to build a real estate project on it and then sell or lease its units, bearing the financing, execution and marketing risks in return for profit.

Construction & Development

Real Estate Development

Real estate development is the activity of turning raw land or an existing property into a residential, commercial, office or service project ready for sale or lease, through stages that start with a feasibility study and end with handover and operation.

Construction & Development

Real Estate Development Fund

Saudi fund providing subsidized real estate loans to citizens, helping homeownership, established 1974 within housing plan.

Saudi Regulations

Real Estate Due Diligence

Real estate due diligence is a systematic legal, technical and financial investigation of a property before buying, leasing or financing it, to confirm sound title free of encumbrances, compliance with permits and the accuracy of its financial information, and to uncover any risk that could affect its value or the buyer’s use of it.

Legal & Regulatory

Real Estate Endowment

A real estate endowment is an owner's unilateral dedication of a specific property (land, a building or a unit) as a waqf, so that it leaves his ownership and its rent or use goes to a charitable cause or to beneficiaries named in his conditions.

Ownership & Rights

Real Estate Events

Real estate events are exhibitions, conferences, forums and showcase days that bring developers, brokers, financiers, investors and buyers together at a set time and place to present projects and units, launch products, build relationships, generate leads and close agreements.

Real Estate Marketing

Real Estate Fair

A real estate fair is an event that brings developers, brokers, financiers, buyers and investors together at a set place and time to present projects, units and financing products directly to the public, generate leads and record reservations.

Real Estate Marketing

Real Estate Finance

The activity of extending credit to buy or build property, governed by the Real Estate Finance Law and its regulation as amended by Minister of Finance Decision 1144 dated 02/06/1443H, under Saudi Central Bank supervision.

Real Estate Financing

Real Estate Finance Law

Saudi law regulating real estate financing operations, defining rights and duties of financiers and borrowers, protecting market and enhancing stability.

Saudi Regulations

Real Estate General Authority (REGA)

Saudi authority regulating real estate sector and licensing brokers and developers, established 2017 to develop and monitor real estate market.

Saudi Regulations

Real Estate Insurance

Real estate insurance is a policy that covers a building, and sometimes its contents, against physical perils such as fire, water leaks, natural catastrophes and theft — often with third-party liability and loss-of-rent cover — in return for an annual premium.

Real Estate Financing

Real Estate Investment

Real estate investment is the deployment of capital into owning property or rights in property, directly or through funds and financial instruments, to earn a return from rent, capital appreciation or development while bearing market, liquidity and regulatory risk.

Valuation & Investment

Real Estate KPIs

Real estate KPIs (key performance indicators) are defined numerical measures used to assess how efficiently a property or portfolio is managed and to compare it with targets and the market.

Property Management

Real Estate Leverage

Real estate leverage is using borrowed money — through real estate financing — alongside the investor’s own capital to buy a property worth more than their own funds allow.

Valuation & Investment

Real Estate Marketing

Real estate marketing is the promotion of a real estate product — for sale, lease or investment — through advertising and promotional means to reach potential buyers and tenants, which is how the Saudi Real Estate Brokerage Law defines it.

Real Estate Marketing

Real Estate Mortgage

A real security recorded over a property to guarantee a debt, governed by the Registered Real Estate Mortgage Law under Saudi Central Bank supervision, and recorded with the competent body to be enforceable against third parties.

Real Estate Financing

Real Estate Platforms

Real estate platforms are websites and apps that let users list and search properties for sale or rent and contact advertisers, sometimes with extra services such as maps, price indicators and viewing scheduling.

Property Management

Real Estate Pledge

A real estate pledge (mortgage) is a contract by which a debtor, or a third party, offers a property as security for a debt, giving the creditor a right in rem to be paid from its price ahead of other creditors and to follow it into any new owner's hands.

Ownership & Rights

Real Estate Portfolio

A real estate portfolio is the set of property assets owned by an individual investor, company or fund, such as apartments, shops, offices, warehouses, land and real estate fund units, managed as a whole to achieve a target return and risk level.

Valuation & Investment

Real Estate Price Index

A quarterly index issued by the General Authority for Statistics measuring property price changes, with 2023 as base year and a 72.7% weight for the residential sector.

Valuation & Investment

Real Estate Registry

An official register recording properties, their rights and transactions, supervised by the Real Estate General Authority under the Real Property Registration Law issued by Royal Decree M/91 dated 19/9/1443H.

Ownership & Rights

Real Estate SaaS

Real estate SaaS (software as a service) is property-management software delivered over the internet as a cloud service for a recurring subscription, used by landlords and offices to manage units, leases, collections, maintenance and accounting without installing local servers or programs.

Real Estate Technology

Real Estate SEO

Real estate SEO (search engine optimisation) is the set of practices that make a brokerage's or property platform's website rank higher in organic search results when users look for properties or property services, by improving content, technical structure, site speed, links and map presence.

Real Estate Technology

Real Estate Succession

Real estate succession is the set of legal steps that transfer a deceased person's properties to his heirs: proving death and inventorying heirs, paying debts and executing the will, then registering, partitioning or selling the property.

Ownership & Rights

Real Estate Tax

Taxes on property ownership or transfer, in Saudi Arabia includes 5% real estate transaction tax on sales, exempt for residential rentals.

Financial & Accounting

Real Estate Transaction Tax (RETT)

A 5% tax on the value of any real estate disposal, payable before title transfer, governed by a new law with a 15-article executive regulation effective 10 April 2025.

Tax & Zakat

Real Estate Website

A real estate website is a website that represents a brokerage, developer or property platform online, presenting properties, services, contact information and licences, receiving client enquiries, and serving as the business's official digital front.

Real Estate Technology

Real Property Registration

A system making the property itself the anchor of registration rather than the owner, issued by Royal Decree M/91 dated 19/9/1443H and rolled out by the Real Estate General Authority over announced areas in phases.

Ownership & Rights

Recovery Fund

Financial reserve allocated to cover potential losses from arrears or bad debts, contributing to cash flow stability.

Financial & Accounting

Referral Program

A referral program is a scheme in which a real estate firm rewards customers or partners who recommend new customers who actually do business with it, using a cash reward, discount, gift or free service, and drawing on people's trust in recommendations from those they know.

Real Estate Marketing

Refinancing

Refinancing is replacing an existing home financing with a new one — with the same financier on revised terms, or by moving the debt to another financier that pays off the first — usually to cut the profit rate, switch between fixed and variable pricing, or change the term.

Real Estate Financing

REIT

Real estate investment traded funds (REITs) are closed-ended public real estate funds whose units are offered to the public and traded on the Saudi Exchange (Tadawul).

Valuation & Investment

Remodeling

Remodeling is altering the design of a building or unit or the layout of its spaces or components — demolishing walls, adding a room, floor or annex, merging two units or changing the use — so that its form or function differs from the original, rather than simply restoring it to its previous state.

Construction & Development

Renewal Notice

Official notice sent by either party before contract expiry to confirm desire for renewal or change, typically sent 60 days before.

Contracts & Leasing

Renovation

Renovation is restoring a building or part of it to its previous good condition by repairing its defects — such as cracks, leaks, concrete deterioration and damaged finishes and services — without adding new components or changing its structural elements, in order to extend its life and keep it safe to use.

Construction & Development

Rent Comparables

Rent comparables are the rents of properties similar in location, type, size, age and finish, leased in a recent period, used as a benchmark to estimate the fair market rent of a given unit.

Property Management

Rent Deferral

Agreement between landlord and tenant to postpone rent payment for set period, occurs in exceptional circumstances, must be documented in writing.

Financial & Accounting

Rent Discount

Reducing part of rent by landlord, may be reward for early payment, incentive for renewal, or compensation for property issues.

Financial & Accounting

Rent Increase

Raising rent value by the landlord, typically done at contract renewal, subject to legal restrictions preventing excessive increases and protecting tenants.

Contracts & Leasing

Rent Payment

Agreed amount tenant pays for property use, monthly or quarterly or annually, documented electronically through Ejar.

Financial & Accounting

Rent-to-Own

System combining lease and purchase; tenant pays rent for set period then becomes property owner, common in Islamic real estate financing.

Contracts & Leasing

Rental Application

A rental application is a form or file submitted by a prospective tenant to the landlord or broker before contracting, containing identity and contact details, employer, approximate income, number of occupants, desired term and proposed payment method, on which the landlord bases the decision to accept and the lease terms.

Property Management

Rental Arrears

Unpaid rent amounts past their agreed-upon due dates, accumulating over time and giving landlord right to legal claim.

Contracts & Leasing

Rental Claim

A rental claim is a lawsuit brought by one party to a lease (landlord or tenant) against the other to enforce a right arising from the tenancy, such as unpaid rent, eviction, termination, compensation for damage, or return of the security deposit.

Disputes & Resolution

Rental Collection

Process of collecting rent payments from tenants regularly, including reminders and follow-up, done electronically through modern systems.

Financial & Accounting

Rental Contract

A written agreement between landlord and tenant specifying rental terms for a property over a defined period for rent, registered in Ejar in Saudi Arabia.

Contracts & Leasing

Rental Disputes

Disagreements between lessor and lessee following three tracks in Saudi Arabia: the enforcement court for a documented contract as an enforcement instrument, the general court for substantive disputes, and the Saudi Real Estate Arbitration Center for arbitration and settlement.

Disputes & Resolution

Rental Listing

A rental listing is a published offer of a property unit available for rent, including its description, location, area, layout, rent, payment terms, photos and contact details, posted on online property platforms, social media or on-site signs.

Property Management

Rental Market Index

Periodic index showing average rental prices in Saudi cities, used to evaluate prices and investment in each region.

Saudi Regulations

Rental Period

The agreed-upon time period for renting property, typically one year renewable, with longer durations possible for commercial contracts.

Contracts & Leasing

Rental Receipt

Official document proving tenant's rent payment, including amount, date, and coverage period, must be kept for future reference.

Contracts & Leasing

Rental Yield

Ratio of annual rental income to property value, important indicator for evaluating real estate investment viability, calculated as percentage.

Contracts & Leasing

Reserve Price

A reserve price is the lowest price at which an owner agrees to sell at auction; Saudi Arabia's Real Estate Auctions Regulation calls it the «minimum acceptable award value», it must be written into the brokerage contract, and the owner need not sell below it.

Auctions & Sales

Residential Compound

A residential compound is a group of villas, houses or apartments on a single, usually walled, site that share guarded entrances and facilities such as pools, gyms, gardens and maintenance services, and is managed as one unit whether it belongs to a single owner who lets the units or to multiple owners.

Property Types

Residential Lease

Lease for residential properties like apartments and villas, mandatory to document in Ejar since 2018 at 125 SAR annually.

Contracts & Leasing

Residential Property

Residential property is any real estate designed and licensed for the permanent housing of individuals and families, such as apartments, villas, duplexes, studios and detached houses; its status comes from the use approved in the plan and building permit, not merely from people living in it.

Property Types

Residential Property Zakat

Residential property zakat refers to the zakat ruling on property a person owns for their own residence or personal use, and the rule is that no zakat is due on it, however high its value, because zakat applies to growing wealth or wealth held for trade, and a home is a basic need.

Tax & Zakat

Residential VAT Exemption

The residential VAT exemption is the rule that makes the lease or licence of residential real estate in Saudi Arabia an exempt supply for Value Added Tax, so a landlord does not add 15% VAT to residential rent, unlike commercial rent, which is taxed at the standard rate.

Tax & Zakat

Retail Space

A retail space (shop) is a real-estate unit used to display and sell goods or services directly to the public, usually at ground level on a commercial street or inside a shopping centre, where the activity carried on requires its own municipal licence.

Property Types

Retargeting

Retargeting is a digital advertising technique that shows tailored ads to people who have already interacted with a real estate firm's website, app, ads or accounts to remind them of the property and prompt them to return and take the next step.

Real Estate Marketing

Return on Investment (ROI)

Ratio of profits achieved from real estate investment to total cost, key indicator for investment success, calculated annually.

Financial & Accounting

Revenue Recognition

Accounting principle determining when revenue is recorded in books, usually when rent is earned not received, per accounting standards.

Financial & Accounting

Right of Way

A right of way is an easement entitling the owner of a property to pass across a neighbouring property owned by someone else to reach his own land or the public road; it arises by agreement or inheritance, or by operation of law for landlocked property that has no access, against fair compensation.

Ownership & Rights

Risk Management

Risk management in real estate investment is a systematic process of identifying the risks that threaten return or capital, such as vacancy, tenant default, price declines and regulatory and construction risks, measuring them, and then avoiding, reducing, transferring or knowingly accepting them.

Valuation & Investment

Rooftop

A rooftop is the open top part of a building above the highest floor, used for water tanks, air-conditioning units and antennas.

Property Types

Rules and Regulations

Rules and regulations in property management are the written controls governing the use of a residential or commercial building or compound, such as quiet hours, use of parking, lifts, pool and gym, waste disposal, pets, moving and fit-out hours, access for visitors and workers, and signage on façades.

Property Management

S

Safety Standards

Construction safety standards are the mandatory technical and procedural requirements that protect the lives and property of occupants, workers and the public during the design, construction and operation of buildings.

Construction & Development

Sakani Program

Saudi housing program aiming to raise citizen homeownership to 70% by 2030, offering housing units and subsidized loans.

Saudi Regulations

Saudi Real Estate Arbitration Center

A center under the Real Estate General Authority offering arbitration, conciliation and settlement services for property disputes, currently handling cases arising from the Ejar, owners associations and brokerage programs.

Disputes & Resolution

Schedule

A project schedule is a time plan that sets out the project's activities, their sequence, the duration of each, start and finish dates and the relationships between them; it is used to measure progress, identify the critical path and calculate the effect of any delay on the completion date.

Construction & Development

Security Deposit

Amount tenant pays at signing as security for property condition, held by the Ejar platform for leases documented there, refunded after deducting damages, typically equal to one month's rent.

Financial & Accounting

Security Services

Security services in a property are the human guarding of a building or compound, including gate guards, patrols, control of visitor and vehicle access, running the monitoring room and responding to incidents, provided by licensed guarding companies or by direct contracts with individually licensed guards.

Property Management

Security Systems

Security systems in a property are the electronic systems that protect the building and its occupants, including CCTV cameras and recorders, card or biometric access control, video intercoms, intrusion alarms and car-park barriers, as well as fire alarm and smoke detection systems.

Property Management

Service Level Agreement (SLA)

A service level agreement (SLA) is a document or contract schedule that sets measurable standards for service quality and speed, such as response time to maintenance requests, time to close and service hours, and specifies what happens if they are not met.

Property Management

Serviced Apartment

A serviced apartment is a fully furnished residential unit offered to guests for short or medium stays for a fee, with hotel-type services such as reception, regular housekeeping and linen changes, within a hospitality facility licensed by the Ministry of Tourism.

Property Types

Settlement

Amicable agreement between parties to end dispute with mutual concessions, enforceable as an executive instrument when its record is issued by an authorised body or approved by a court.

Legal & Regulatory

Settlement Conference

A settlement (reconciliation) session is a meeting between the parties to a dispute, held before or during litigation under the supervision of a conciliator, mediator or competent body, to try to reach a consensual settlement that replaces or shortens a court judgment.

Disputes & Resolution

Severability Clause

Clause ensuring that nullifying part of contract doesn't affect remaining clauses, preserving full contract validity when one term invalid.

Legal & Regulatory

Shopping Mall

A shopping mall is a large enclosed or open-air commercial complex that groups shops, restaurants, cafés, entertainment and services under unified management and operation, with the owner leasing units to commercial tenants under commercial leases.

Property Types

Short-Term Rental

A short-term rental is the letting of a residential unit, usually furnished, for a short period ranging from one night to a few weeks or months, to tourists, visitors, business travellers and people relocating temporarily, at a daily, weekly or monthly rate that is usually higher, pro rata, than annual rent.

Property Types

Smart Home

A smart home is a residential unit fitted with internet-connected devices that can be controlled remotely or programmed to run automatically, such as smart locks, air-conditioning thermostats, lighting, video doorbells, water-leak and smoke sensors and energy meters, usually managed through an app or central hub as part of the Internet of Things.

Property Management

Social Media

Social media in real estate means the digital platforms that allow content publishing and direct interaction with audiences — micro-blogging, photo-sharing, short-video and ephemeral-messaging platforms — used by brokers, developers and landlords to showcase properties, build trust and attract clients.

Real Estate Technology

Soil Test

A soil test is a geotechnical investigation done before structural design, drilling boreholes on site and testing samples in the field and laboratory to determine soil type, bearing capacity, groundwater and chemical content, so the engineer can recommend the foundation type and depth.

Construction & Development

Specialized Property

A specialised property is a property designed for a particular activity or use that is difficult to convert to another purpose without substantial alterations, such as fuel stations, hospitals, schools, stadiums and refineries; it is rarely sold on the market separately from the business operating in it.

Property Types

Specific Performance

Specific performance is an order compelling the debtor to perform exactly what he undertook in the contract, such as handing over a property, transferring its ownership or completing a work, instead of merely paying money damages, where this is possible and the creditor requests it after formally notifying the debtor.

Disputes & Resolution

Speculation

Real estate speculation is buying property — especially land — mainly to resell it within a short period and profit from price differences, rather than to live in, develop or earn rental income from it.

Valuation & Investment

Starting Bid

A starting bid is the value at which bidding on a property opens; REGA's Real Estate Auctions Regulation calls it the «minimum auction opening value», which must be set in the brokerage contract, and it differs from the minimum acceptable award value below which the owner is not bound to sell.

Auctions & Sales

Statement of Claim

A statement of claim is the formal document by which a claimant brings a case before the court, setting out the parties, the subject matter, the relief sought and its grounds; once it is registered with the court, the case is deemed filed.

Disputes & Resolution

Statute of Limitations

The statute of limitations (in Saudi terminology, the period after which a claim is ‘not heard’ because of the passage of time) is the legal period after which a court will no longer hear a claim for a right if the defendant denies it and invokes the lapse of time.

Legal & Regulatory

Storage Unit

A storage unit is a small or medium enclosed space rented to keep goods, belongings or documents, whether attached to a shop or building or within a ‘self-storage’ facility that lets units of various sizes to individuals and small businesses on flexible terms.

Property Types

Strata Title

Strata title is a form of ownership in which each owner holds a separate unit in a jointly owned building, such as a flat, floor, shop or parking space, under its own title deed, plus an undivided share in the common parts such as the land, entrances, lifts and roof.

Ownership & Rights

Structural Design

Structural design is the engineering process that defines a building's load-bearing system — foundations, columns, beams, slabs and bearing walls — and the size, reinforcement and materials of each element, so it safely resists dead, live, wind and seismic loads throughout its design life.

Construction & Development

Studio

A studio is a small residential unit in which living and sleeping are combined in a single main room, with a separate bathroom and a small kitchen or kitchenette, suited to a single person or a couple; it is usually the smallest and least expensive unit type in a building.

Property Types

Subcontractor

A subcontractor is a contractor to whom the main contractor assigns part of the work — or sometimes all of it — under a separate contract between them, such as electrical, plumbing, HVAC, waterproofing or lift works, with no direct contract with the employer in principle.

Construction & Development

Subletting

When tenant rents the leased property to third party, requiring landlord's written consent, prohibited under Saudi law without permission.

Contracts & Leasing

Subpoena

A subpoena, in common-law systems, is a court order compelling a person to attend to give evidence or to produce documents, on pain of penalty.

Disputes & Resolution

Supply and Demand

Supply and demand are the two fundamental forces that set property prices and rents: demand is the quantity of property buyers or tenants want and can afford at each price level, supply is the number of units available for sale or rent, and the price moves toward the point where the two balance.

Valuation & Investment

Sustainability

Sustainability in real estate and construction means designing, building and operating properties to meet present needs without compromising future generations, by balancing environmental, economic and social dimensions over the building's whole life.

Construction & Development

T

Target Audience

A target audience is the specific segment of potential buyers, tenants or investors to whom a property or project marketing campaign is directed, defined by shared characteristics such as location, income level, household size, nationality and purpose of buying or renting.

Financial & Accounting

Turnkey

Turnkey describes a contract or deal in which the contractor or developer undertakes to deliver the project or unit complete and ready for immediate use, designed, built, equipped and tested, for a lump-sum price, so that the client only has to 'turn the key'.

Construction & Development

U

Unfurnished Property

An unfurnished property is a residential or commercial unit let without furniture or movable appliances, so the tenant furnishes it at their own expense; its rent is usually lower than that of an equivalent furnished unit, and it is the most common format for long-term residential leasing.

Property Types

Unified Lease Contract

A standard lease contract documented through the Ejar platform that constitutes an enforcement instrument, allowing the rightful party to approach the enforcement court directly without filing a lawsuit.

Contracts & Leasing

Usufruct

Usufruct is a real right entitling its holder (the usufructuary) to use real estate owned by someone else, exploit it and collect its fruits for a set term or for life, while the owner retains bare ownership and the usufructuary must preserve the property and return it when the right ends.

Ownership & Rights

Utilities

Utilities are the essential services supplied to a property from external networks to make it fit to live or work in, chiefly electricity, water, sewerage, telecommunications and internet, plus gas and waste collection.

Property Management

Utility Management

Utility management in a property is organising the supply of electricity, water, sewerage and internet, metering consumption, allocating bills and following up payment, including opening and transferring accounts, reading meters, monitoring consumption and leaks, and deciding who pays what: the owner, the tenant or the owners’ association.

Property Management

V

Vacancy Rate

The vacancy rate is the share of unleased units in the total lettable units of a property or portfolio over a given period, calculated as vacant units divided by total units times 100, or more precisely on a day basis: total vacant days across all units divided by total available days.

Property Management

Vacant Land

Vacant land is a plot with no buildings or permanent structures on it, whatever its approved land use (residential, commercial, industrial or other); it is a general market term and is not identical to "white land", which is a legal term tied to annual fees in Saudi Arabia.

Property Types

Vacant Possession

Delivering property to tenant free from any legal or factual encumbrances, fundamental condition in most lease contracts.

Contracts & Leasing

Vacation Rental

A vacation rental is the nightly letting of an independent furnished unit, such as a chalet, rest house (istiraha), holiday home or apartment, to tourists for short stays; in Saudi Arabia it is a hospitality activity requiring a Ministry of Tourism permit or licence, not merely a lease.

Property Types

Variable Rate

A variable rate is a profit rate (term cost) in a financing contract that is recalculated periodically according to an index or reference rate named in the contract plus a fixed margin, so the installment rises or falls as the index moves during the financing term.

Real Estate Financing

VAT on Rental

15% tax imposed on commercial rentals in Saudi Arabia, residential rentals exempt, paid by tenant to VAT-registered landlord.

Financial & Accounting

VAT on Services

VAT on real estate services is the standard 15% VAT charged by a registered supplier on property-related services, such as sale and letting brokerage commissions, property-management and rent-collection fees, valuation, surveying, design and maintenance.

Tax & Zakat

VAT Registration

VAT registration is the enrolment of a person carrying on an economic activity, whether an individual or an entity, with the Zakat, Tax and Customs Authority (ZATCA) to obtain a tax identification number.

Tax & Zakat

Verdict

A verdict (judgment) is the decision the competent court issues on the merits after hearing the claim and the answer and examining the evidence; it settles all or part of the dispute and states each party’s rights and obligations.

Disputes & Resolution

Video Marketing

Video marketing is the use of video content — filmed property tours, short social media clips and virtual tours — to present a property and convey its marketing message in a way closer to an actual viewing.

Real Estate Marketing

Villa

A villa is a detached dwelling built on its own plot of land, with one or more floors, usually surrounded by setbacks and a courtyard or garden and generally intended for a single family; it may include a roof or outdoor annex or a swimming pool.

Property Types

Virtual Tour

A virtual tour is an interactive online presentation of a property, usually built from 360-degree panoramic images or a 3D scan, that lets a tenant or buyer move between rooms and inspect details from a phone or computer without visiting the site.

Property Management

Vision 2030

Comprehensive Saudi development plan targeting economic diversification, including important real estate goals like raising homeownership to 70%.

Saudi Regulations

Void Contract

Contract producing no legal effect due to violating law or public order, considered as if it never existed, impossible to correct.

Legal & Regulatory

Voidable Contract

Originally valid contract that can be invalidated upon request by one party for some defect, like incapacity, duress, or fraud.

Legal & Regulatory

Voluntary Vacancy

Tenant leaving the property by full free will at contract end or by agreement with landlord on early termination.

Contracts & Leasing

VR Real Estate

VR (virtual reality) in real estate is technology that places the user inside an immersive 3D digital model of a property — through a headset or an interactive screen — so they can walk through it as if present, whether the property exists or is still on plan.

Real Estate Technology

W

Wafi Program

Wafi is Saudi Arabia’s official programme and platform for regulating off-plan sales and leases of real estate projects.

Saudi Regulations

Waiver

One party giving up right in contract, must be explicit and clear, may be for compensation or without, documented in writing.

Legal & Regulatory

Waqf (Endowment)

A waqf (Islamic endowment) is the permanent dedication of an asset, such as a property, so that it can no longer be sold, gifted or inherited, while its use or income goes to a charitable purpose or to named beneficiaries such as the founder's descendants.

Ownership & Rights

Warehouse

A warehouse is a building or facility used for the permanent or temporary storage of goods and materials, with loading, unloading and handling areas; in Saudi Arabia it is a municipally licensed activity that must be located in areas designated for warehouses or in industrial zones.

Property Types

Warranty

A warranty in real estate is the statutory or contractual obligation of a seller, developer or contractor that the property is free from defects reducing its value or usefulness, and to repair or compensate for defects that appear within a set period after handover.

Construction & Development

Withholding Tax

Withholding tax (WHT) is a tax that a resident payer in Saudi Arabia, or the permanent establishment of a non-resident, deducts from amounts paid from a Saudi source to a non-resident that has no permanent establishment in the Kingdom, and then remits to the Zakat, Tax and Customs Authority (ZATCA) on the recipient's behalf.

Tax & Zakat

Witness

Person who witnessed the disputed event and provides testimony before judicial body, testimony considered legally valid evidence.

Legal & Regulatory

Z

Zakat

Islamic obligation imposed on wealth at 2.5% annually, includes properties for trade and sale but excludes those for residence or long-term investment.

Financial & Accounting

Zakat Base

The zakat base is the amount on which a payer's zakat is calculated.

Tax & Zakat

Zakat Rate

The zakat rate is the percentage applied to the zakat base to determine the zakat due.

Tax & Zakat

ZATCA

Saudi government entity responsible for collecting zakat, taxes, and customs, overseeing VAT and e-invoicing compliance.

Saudi Regulations

Zoning

Zoning (a zoning plan) is the municipal designation of each plot’s permitted use in Saudi cities — residential, commercial, industrial, mixed or other — together with its building rules, and it is the basis for licensing and investment decisions.

Saudi Regulations